A consortium of investors in mortgage bonds securitized by Bank of America today demanded the bank buy back loans included in $47 billion of residential mortgage-backed securities serviced by Countrywide Financial,writes John Carney. The notice of the demand was issued to both Bank of America, which bought Countrywide in 2008, and Bank of New York Mellon, which is the trustee for the mortgage bonds.
Carney observes:
It is not lost on us that the demand was issued on the same day that Bank of America issued its third-quarter earnings and reassured analysts that they did not expect put-back liabilities to be large. Obviously, the consortium is out to do maximum damage to Bank of America.
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